Since 2020 members of the Ruedi Wealth team have been writing weekly investing and retirement planning columns for our local newspaper, The News-Gazette.
Last week on our radio show we received a text from some super-savers who wanted to know if it was ok for them to save slightly less this year to treat themselves to a Formula 1 Race in Las Vegas. It was a great reminder that the most responsible savers often need “permission” to spend more.
Lately I’ve been noticing several posts with the same features pop up: a retirement account balance, current age, desired retirement age, and the question, “am I cooked?”
A large tax-deferred investment account is a great asset to have when planning your retirement. But it does come with a catch: you have to pay taxes when you pull the money out.
Inflation is something we know will occur during a typical retirement, we just don’t know when or how much. A retirement spending plan that can handle many different types of inflationary environments is essential to retirees.
With a traditional 401(k) you lower your taxable income and save on taxes now; with a Roth 401(k) you pay taxes now and withdraw tax-free in the future. So naturally, the option that will provide you the most benefit depends on whether your tax rate is higher now, or in the future.
You’re retired. Your checking account is getting low and you need to refill it by withdrawing from your investment portfolio. You must ask yourself…